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- FINRA Board of Governors - Election Notice
- Trump Signs Biggest Rollback of Bank Rules Since Financial Crisis
- SEC Commissioners Hold Investor Town Hall in Atlanta
- SEC Proposes FAIR Act Rules to Promote Research Reports on MFs, ETFs, Other Funds
- FINRA Markup/Markdown Analysis Report - Phone Workshop, WebEx Presentation
- NASAA Announces Coordinated International ICO and Crypto Crackdown
- New York Investment Advisor Settles SEC Insider Trading Charges
- Supreme Court Backs Companies Over Worker Class-Action Claims
- Bank of America Introduces Erica, Its AI Financial Assistant
- Banks Are Getting Another Volcker Rule Win
- Citigroup to Pay $7.3Mn Fine for Substandard IPO Work
- FINRA Stretches Definition of Participating in a Private Securities Transaction - Bill Singer
- Post Mortem Auto-Pilot Trading Sends Stockbroker's Career into Head-On Regulatory Crash
- Wells Fargo Has Shown Us Its Contemptible Values
- UBS to Counter Trading Troubles With M&A Work
- SEC Moves Quickly To Shut Down Fake Pre-IPO Share Scam
- SEC Testimony: Oversight of the SEC Division of Enforcement
- FINRA Modifies 'Agency Debt Security' in Rule 6710
- Is Jamie Dimon Doing a U-Turn on Bitcoin?
- After New Yorker's Racist Rant Goes Viral, His Law Firm Gets Pummeled with 1-Star Yelp Reviews
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NEWSLETTERS & ALERTS
‘Securities Compliance Group’ Gives Consulting Firms a Bad Rep
The SEC recently charged a Wheaton, IL-based securities lawyer and his law firm for their roles in a fraudulent scheme to conceal the identity of a company's principal control person - a convicted felon who had been previously incarcerated for securities fraud. In settling the SEC charges, Adam Tracy and his law firm, Securities Compliance Group, Ltd., agreed to pay around $28K in fines, disgorgement (~$2.5K) and interest.
SEC FINDINGS. Adam Tracy and Securities Compliance Group (the "Defendants") were retained by a convicted felon and his company, Sonant Communications Corp., to file a registration statement with the SEC for an IPO of 10 million shares of common stock. At the time, Sonant Communications was a telecommunications firm, created to provide telecommunications services to small and medium-sized companies. It is no longer in business.
As part of the arrangement, Tracy agreed to conceal the felon’s role with the company from the SEC and the investing public. So, from April 2015 through October 2015, the Defendants prepared and filed materially false registration statements with the SEC on behalf of Sonant Communications. The registration statements omitted the felon's name and, instead, inserted others as being the principal officers and control persons of Sonant – without their knowledge or consent.
[For further details, click on … SEC Complaint]